Charting Stocks

According to todays ISM release, the US Manufacturing sector dropped again in February while the employment sentiment fell to its lowest reading ever.  This is the 13th straight month of manufacturing declines.

The Institute for Supply Management’ s (ISM) monthly purchasing managers’ index (PMI) registered a reading of 35.8% in February. Readings under 50% are consistent with a recession. All of the 18 sectors surveyed reported a decline in February. The employment sentiment index dropped to 26.1%, the lowest reading EVER (In the 61 year history of the reading).

Both the export and import indexes declined in February while the import data reaching its lowest levels EVER (In the 20 years of keeping records)

Here’s what respondents have told the ISM:

• “Customers across the board are being very cautious about ordering any stock.” (Transportation Equipment)
• “Business is very slow, some of which is due to seasonality, and some is due to the state of the economy.” (Chemical Products)
• “Asia previously was over 50 percent of our business and is now close to zero.” (Machinery)
• “Still seeing frequent attempts at increases while everything is reacting to an economy that is retracting.” (Food, Beverage & Tobacco Products)
• “Business slightly improved in February. May be the result of inventories finally coming into balance with lower demand.” (Paper Products)

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